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Derivatives and Risk Management, 1st Edition
book

Derivatives and Risk Management, 1st Edition

by Sundaram Janakiramanan
May 2024
Intermediate to advanced content levelIntermediate to advanced
542 pages
27h 26m
English
Pearson India
Content preview from Derivatives and Risk Management, 1st Edition
Interest Rate Futures 185
8.11 Uses of Short-term Interest Rate Futures Contracts
Short-term interest rate futures contracts can be used for the following purposes:
1. To hedge borrowing costs
2. To hedge an investment yield
3. To create synthetic swaps
4. To speculate on interest rate movements or to enter into directional trades
5. To enter into spread trades
6. To enter into arbitrage transactions
7. To adjust the duration of the portfolio
8.11.1 Hedging Borrowing Costs
Short-term interest rate futures contracts are used when an organization is planning to borrow within a
very short time period. It can also be used to hedge the fu ...
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Publisher Resources

ISBN: 9781299447547Publisher Website